Central Puerto: Ps. 17,185 Million in Net Results and New Expansion
Projects

March 12, 2019 12:08 PM Eastern Daylight Time

BUENOS AIRES, Argentina--(BUSINESS WIRE)--Central Puerto S.A. (“Central Puerto” or the “Company”) (NYSE: CEPU),
one of the largest private sector power generation company in Argentina,
as measured by generated power, reports its consolidated financial
results for Fiscal Year 2018.

A conference call to discuss 2018 financial results will be held on
March 12, 2019 at 13:00 Eastern Time (see details below). All
information provided is presented on a consolidated basis, unless
otherwise stated.

Financial statements as of and for the year ended on December 31, 2018
include the effects of the inflation adjustment, applying IAS 29.
Accordingly, the financial statements have been stated in terms of the
measuring unit current at the end of the reporting period, including the
corresponding financial figures for previous periods informed for
comparative purposes. Growth comparisons refer to the same period of the
prior year, measured in the current unit at the end of the period,
unless otherwise stated. Consequently, the information included in the
Financial Statements for the year ended on December 31, 2018, is not
comparable to the Financial Statements previously published by the
company.

Definitions and terms used herein are provided in the Glossary at the
end of this document. This release does not contain all the Company’s
financial information. As a result, investors should read this release
in conjunction with Central Puerto’s consolidated financial statements
as of and for the year ended on December 31, 2018 and the notes thereto,
which will be available on the Company’s website.

A. Highlights

4Q2018 energy generation decreased 14% to 3,471 GWh, as compared
to 4,039 GWh during the same period of 2017 (see section C. Main
Operating Metrics), mainly due to a 44% decrease in the hydro
generation, explained by the decision from CAMMESA to increase the water
reserves for 2019’s Summer months and a reduction in the waterflow from
the Limay and Collón Curá rivers.

Adjusted EBITDA increased to Ps. 31,989 million in 2018, a 461%
increase compared to Ps. 5,705 million in 2017 (see section D.
Financial).

Consolidated Net income increased 227% to Ps. 17,185 in 2018, compared
to Ps. 5262 million in 2017.

Net income for shareholders of Central Puerto, increased to Ps.
17,519 million in 2018, a 231% increase compared to Ps. 5,291
million in 2017 (see section D. Financial).

“During the fourth quarter we continued with the development of our
expansion plans to increase our installed capacity, from both renewable
and conventional sources.

This shows the strong commitment of Central Puerto, which even in a
complex economic context, focuses in the future, consolidating itself as
one of the leaders of the market, providing solutions to the energy
requirements of Argentina”

Jorge Rauber, CEO Central Puerto

Res. SE 70/2018. On November 7, 2018 the Secretariat of Energy
issued Res. 70/2018, which authorized generators to procure their own
fuel for assets under the Energía Base Regulatory framework. If
generation companies opt to take this option, CAMMESSA will value and
pay the generators their respective fuel costs in accordance with the
Variable Costs of Production (CVP) declared by each generator to
CAMMESA. According to CAMMESA’s procedure, the machines with the lower
CVPs are dispatched first, and consequently, may produce more electric
energy.

The Agency in Charge of Dispatch (Organismo Encargado del Despacho or
“OED” using the Spanish acronym) -CAMMESA- will continue to supply the
fuel for those generation companies that do not take this option.

Application of IAS 29. Given that Argentina’s accumulated
triennial inflation, either calculated based on the wholesale price
index or the consumer price index, is currently over 100%, and the
revised targets of the national government, and other available
projections, indicate that this trend will not reverse in the short
term, the Argentine economy is currently considered hyperinflationary
under IAS 29. Under IAS 29, entities that must prepare their financial
statements pursuant to IFRS, and whose functional currency is the
Argentine peso, such as Central Puerto, must restate their financial
statements relating to annual or intermediate periods. Such restatement
must take place as if the economy had always been hyperinflationary,
using a general price index that reflects changes in the purchasing
power of the currency.

Accordingly, the financial statements have been stated in terms of the
measuring unit current at the end of the reporting period, including the
corresponding financial figures for previous periods, informed for
comparative purposes.

B. Recent news

Purchase of Brigadier López plant. On February 27 Central Puerto
was awarded the Brigadier López plant in the auction conducted by
Integración Energética Argentina S.A. (IEASA).

The plant currently operates with a gas turbine (280 MW) in an open
cycle configuration and is currently in advance stages to add a steam
turbine in a combined cycle configuration, which will add 140 MW. Once
completed, the combined cycle will increase its efficiency
significantly, becoming one of the most efficient combined cycle of
Argentina in terms of heat rate (approximately 1,485 Kcal/KWh),
according to CAMMESA’s estimations. The power capacity and the energy
produced will be taken by CAMMESA under PPA agreements.

The price offered for the transaction was US$ 165 million, from which
US$ 155 million will be paid in cash, and US$ 10 million will be settled
with the transfer of trade receivables owed to the company by CAMMESA
(LVFVD), accrued under the Res. SE 95/13 regulatory framework.

Central Puerto will also assume US$ 161 million in debt, to be paid in
41 monthly equal installments starting on April 2019 and accruing a 6
months-Libor + 5% variable or 6.25% fixed interest rate, the highest.

The plant is expected to be transferred effectively on April 1, 2019.

New Regulatory framework for Energía Base Units. On March 1, 2019
the Secretariat of Renewable Resources and Electric Market issued Res.
1/2019, which replaces the tariff scheme for the Energía Base energy
generation units. The table below sets forth the tariffs to be applied
starting on March 2019, by source of generation:

Items

Thermal

Hydro

Power capacitypayments Res.1/191

Up to US$ 7,000 per MW per monthduring December, January,
February, June, July and August

Up to US$ 5,500 per MW per monthduring March, April, May,
September, October andNovember

These prices, are multiplied by a percentage, which dependson
the average Utilization Factor (UF) of each unit duringthe
previous last twelve months (mobile year):

If UF >= 70%, the unit receives 100% of the price

If the is between 30 and 70%, the machine receives UF*0.75+0.475
of the price (lineal proportion)

If UF<30%, unit receives 70% of the price

US$ 3,000 perMW per month

Energy paymentsRes. 1/192

US$ 5.4 per MWh for generation with natural gasUS$ 8.4 per
MWh for generation with fuel oil/gas oil

US$ 4.9 perMWh

1 Effective prices for capacity payment depended on the
availability of each unit, and the achievement of the Guaranteed Bid
Capacity (DIGO in Spanish) that each generator may send to CAMMESA twice
a year.2 Energy payments above mentioned includes the
tariffs for energy generated and energy operated as mentioned in Res.
SRRyME 1/2019.

C. Main operating metrics

The table below sets forth key operating metrics for 4Q2018, compared to
3Q2018 and 4Q2017, and 2018, compared to 2017:

Key Metrics

4Q2018

3Q2018

4Q2017

Var %(4Q/4Q)

2018

2017

Var %

Continuing Operations

Energy Generation (GWh)

3,471

4,423

4,039

(14%)

14,479

15,626

(7%)

-Electric Energy Generation-Thermal

2,413

2,911

2,455

(2%)

10,042

11,901

(16%)

-Electric Energy Generation - Hydro

893

1,456

1,583

(44%)

4,216

3,725

13%

-Electric Energy Generation - Wind

165

56

-

N/A

221

-

N/A

Installed capacity (MW; EoP1)

3,810

3,810

3,791

1%

3,810

3,791

1%

-Installed capacity -Thermal (MW)

2,222

2,222

2,350

(5%)

2,222

2,350

(5%)

-Installed capacity - Hydro (MW)

1,441

1,441

1,441

0%

1,441

1,441

0%

-Installed capacity - Wind (MW)

147

147

-

N/A

147

-

N/A

Availability - Thermal2

94%

94%

91%

3 p.p.

89%

90%

(1 p.p.)

Steam production (thousand Tons)

256

286

289

(11%)

1103

1178

(6%)

Source: CAMMESA; company data.1 EoP refers to “End of
Period”2 Availability weighted average by power
capacity. Off-time due to scheduled maintenance agreed with CAMMESA is
not included in the ratio.

In 4Q2018, energy generation from continuing operations decreased 14% to
4,422 GWh, compared to 4Q2017, mainly due to a 44% decrease in the hydro
generation, explained by the decision from CAMMESA to increase the water
reserves for 2019’s Summer months and reduction in the waterflow from
the Limay and Collón Curá rivers, while thermal production in the period
decreased 2. This decrease was partially offset by the increase in
energy generation from the wind farms Achiras I and La Castellana I,
which started operations on the 3Q2018. During 4Q2018, machine
availability of thermal units was 94%, compared to 91% in 4Q2017,
showing a sustained level and well above the market average availability
for thermal units for the same period of 79%, according to data from
CAMMESA.

Finally, steam production showed a 11% decrease totaling 256,000 tons
produced during 4Q2018 compared to 289,000 tons during the 4Q2017, due
to less demand by our client.

During 2018, energy generation from continuing operations decreased 7%
to 14,479 GWh, compared to 2017, affected by a 16% decrease in thermal
generation mainly due to scheduled maintenance in the Puerto Combined
Cycle Plant during 2Q2018. The temporary impact on thermal production
was partially offset by a 13% increase in hydro generation due to
greater water flow, and the increase in energy production due to the
star of operations of Achiras I and La Castellana I. During 2018,
machine availability of thermal units was 89%, compared to 90% in 2017,
mainly due to the above-mentioned extension (unscheduled) of the
maintenance of the Puerto Combined Cycle Plant. Nonetheless, Central
Puerto’s availability was higher than the market average of 79% for the
same period, according to data from CAMMESA.

Finally, during 2018, steam production decreased 6% to 1,103,000 tons
compared to 1,178,000 during the same period of 2017, due to less demand
by our client.

Renewable energy

During 3Q2018, La Castellana I (99 MW) and Achiras I (48 MW) wind farms
commenced their commercial operations. These plants generated and sold,
under the RenovAr Program, a total of 165 GWh of electric energy during
their first months of operations.

NOTE: Exchange rates quoted by the Banco de la Nación Argentina are
provided only as a reference. The average exchange rate is calculated as
the average of the daily exchange rates quoted by the Banco de la Nación
Argentina for wire transfers (divisas) for each period.

Adjusted EBITDA Reconciliation

Million Ps.

2018

2017

Var %

Consolidated Net income for the period2

17,185

5,262

227%

Result from exposure to the change in purchasing power of the
currency

Revenues from continuing operations increased 48% to Ps. 14,265
million in the 2018, as compared to Ps. 9,639 million in 2017. The
increase in revenues was mainly driven by:

(i) the tariff increase established by Res. 19/17, which set higher
prices for energy generation and machine availability and set them in US
dollars (2018 was fully-impacted by the November 2017 tariff increase),

(ii) an increase in the exchange rate for 2018 higher than the inflation
for the period, which impacted tariffs set in US dollars, in terms of
argentine pesos current at the end of the reporting period. As a
reference, during 2018, the foreign exchange rate increased 102.2%, and
inflation rate was 47.6%, while during 2017 the foreign exchange rate
increased 17.4% and the inflation rate was 24.8%, and

(iii) the price for the self-supplied fuel recognized by CAMMESA, in
accordance to Res. 70/18, for the natural gas used during November and
December 2018, in some of the units under the Energía Base regulatory
framework, which amounted Ps. 2,129 million.

This was partially offset by a 7% decrease in energy generation from
continuing operations that totaled 14,479 GWh during 2018, and less
availability from our thermal units during 2018, mainly because of the
scheduled maintenance of the Puerto Combined Cycle Plant.

The table below sets forth the tariff scheme for Energía Base which was
effective between November 2017 and February 2019, by source of
generation:

Thermal

Hydro

Capacity paymentsRes. 19/171

Up to US$ 7,000 per MW per month

US$ 3,000 per MW permonth

Energy paymentsRes. 19/17

US$ 7 per MWh for generation with natural gasUS$ 10 per MWh
for generation with fuel oil/gas oil

US$ 4.9 per MWh

1Effective prices for capacity payment depended on the
availability of each unit, and the achievement of the Guaranteed Bid
Capacity (DIGO in Spanish) that each generator may send to CAMMESA twice
a year. For further details, see “Item 4.B. Business Overview—The
Argentine Electric Power Sector—Remuneration Scheme—The Current
Remuneration Scheme” in the annual report on Form 20-F filed with the
SEC on April 27, 2018.

Gross profit increased 75% to Ps. 7,779 million, compared to Ps.
4,439 million in 2017. This increase was due to (i) the above-mentioned
increase in revenues, and (ii) a less-than-proportional increase in
costs of sales that totaled Ps. 6,487 million, a 25% increase as
compared to Ps. 5,199 million in 2017. The increase in the cost of sales
was primarily driven by:

(i) the cost of the self-supplied fuel purchased in accordance to Res.
70/18 described above for around Ps. 1.9 billion;

(iv) a higher cost of natural gas for the units that generate steam or
electric energy under the Energía Plus framework, mainly due an increase
in the exchange rate for 2018 that was higher than the inflation for the
period, which impacted in the US dollars denominated price of natural
gas, in terms of argentine pesos current at the end of the reporting
period,. As a reference, during 2018, the foreign exchange rate
increased 102.2%, and inflation rate was 47.6%, while during 2017 the
foreign exchange rate increased 17.4% and the inflation rate was 24.8%,
This was partially offset by lower prices in US dollars

This was partially offset by a 7.8% decrease in the non-fuel-related
costs of production, mainly due to (i) a 7% decrease in energy
generation, which resulted in a decrease of Ps. 119 million in
maintenance costs, a Ps. 59 million decrease in depreciation, and a Ps.
23 million decrease in consumption of materials and spare parts, (ii) a
decrease in Ps. 82 million decrease in the purchase of energy and power
(iii) lower-than-inflation increases in costs such as compensation to
employees and other long-term employee benefits.

Operating income before other operating results, net, increased 89%
to Ps. 6,389 million, compared to Ps. 3,383 million in 2017. This
increase was due to (i) the above-mentioned increase in gross profits,
and (ii) a less-than-proportional increase in administrative and selling
expenses that totaled Ps. 1,389 million, a 32% increase as compared to
Ps. 1,056 million in 2017. This increase was mainly driven by (i) a 86%
increase in taxes on bank account transactions, due to increased
revenues, costs and capital expenditures completed during the period,
(ii) a 270% increase in maintenance expenses mainly as a result of civil
works conducted on the office buildings conducted during 2018, and (ii)
a 26% increase in fees and compensation for professional services due to
legal and financial advisory and consultancy services used during the
period.

Adjusted EBITDA increased to Ps. 31,989 million in 2018, compared
to Ps. 5,705 million in 2017. This exceptionally high increase was
driven by (i) the increase in operating results before other operating
income, net mentioned above; (ii) a Ps. 11,017 million during the 2018
from a one-time-gain from the CVO Commercial Operation Approval (the
“CVO effect”) and (iii) Ps. 13,953 million during the 2018 from the
foreign exchange difference and interest accrued on the trade
receivables denominated in US dollars, mainly from FONI trade
receivables.

Net income increased to Ps. 17,185 million or Ps. 11.64 per share, in
2018, compared to Ps. 5,262 million or Ps. 3.52 per share, in 2017.
In addition to the above-mentioned factors, net income was (i)
negatively impacted by higher financial expenses that amounted to Ps.
6,301 million in 2018, compared to Ps. 1201 million in 2017, and (ii)
positively impacted by higher financial income which amounted to Ps.
2,280 million during 2018, compared to Ps. 1,559 million in 2017, in
each case under (i) and (ii), mainly due to the foreign exchange
difference over US dollar denominated debt and financial assets (which
excludes FONI and other trade receivables). Additionally, during 2018,
the results from discontinued operation decreased to Ps. 276 million
during 2018, compared to Ps. 791 million in 2017, and the results from
the share of profit of associates decreased to Ps. 1,074 million in
2018, as compared to Ps. 1,173 million in 2017, mainly due to an
extraordinary gain from TGM registered in 2017, partially offset by
better results from the operations of Ecogas.

Finally, results from exposure to the change in the purchasing power of
the currency totaled Ps. 4,036,196 million in 2018, as compared to Ps.
151 million in 2017.

FONI collections increased to Ps. 654 million in 2018, compared
to Ps. 573 million in 2017 -both including VAT- (equivalent to
approximately US$ 17 million and US$ 15 million, respectively, at the
exchange rate as of December 31, 2018), in both cases associated to the
FONI trade receivables for San Martín and Manuel Belgrano Plants. As for
the trade receivables associated with the CVO agreement, all the
documentation has been finalized by CAMMESA and the collection is
expected to start on March 2019.

Financial Situation

As of December 31, 2018, the Company and its subsidiaries showed a
strong balance sheet with Cash and Cash Equivalents of Ps. 230 million,
and Other Current Financial Assets of Ps. 1,965 million.

Loans and borrowings totaling Ps. 5,877 million were received mainly by
Central Puerto’s subsidiaries CP Achiras and CP La Castellana, to
finance the construction of La Castellana I and Achiras I wind farms.
From these, Ps. 673 million were current (due date of less than one
year), and Ps. 5,204 million were non-current. The IFC-IIC facilities
have to be repaid in 52 quarterly equal installments started to be paid
on February 2019 in the case of CP La Castellana, will start to be paid
on May 2019, in the case of CP Achiras.

Million Ps.

As ofDecember 31,2018

Cash and cash equivalents

159

Other financial assets

1,914

Financial Debt

0

Subtotal Individual Net Cash Position

2,072

Cash and cash equivalents of subsidiaries

71

Other financial assets of subsidiaries

51

Financial Debt of subsidiaries

Composed of:

(5,877)

Financial Debt of subsidiaries (current)

(673)

Financial Debt of subsidiaries (non-current)

(5,204)

Subtotal Subsidiaries Net Cash Position

(5,755)

Consolidated Net Cash Position

(3,682)

Cash Flows for 2018

Net cash provided by operating activities was Ps. 4,613 million
during 2018. This cash flow arises from Ps. 24,243 million from the
operating income from continuing operations obtained during the 2018, minus
the non-cash items included in it, which were mainly: (i) Ps. 11,017
million from the one-time CVO receivables update and interest, (ii) Ps.
11,404 million from trade receivables foreign exchange difference, and
(iii) Ps. 4,240 million from income tax paid.

Net cash used in investing activities was Ps. 5,070 million in 2018.
This amount was mainly due to (i) payments that amounted to Ps.
6,958 million for the purchase of property, plant and equipment for the
construction of Achiras I and La Castellana I wind farms, and thermal
cogeneration units Terminal 6 and Luján de Cuyo. This was partially
offset by partially offset by (i) Ps. 293 million obtained by the sale
of short-term financial assets, net, (ii) Ps. 934 million from proceeds
from dividends from associates, specially Ecogas and TGM and (iii) Ps.
626 million from the proceeds of the La Plata Plant Sale.

Net cash provided by financing activities was Ps. 687 million in 2018.
The main financing activities during 2018 were the above-mentioned
long-term loans received by CP Achiras and CP La Castellana, for the
construction of the Achiras I and La Castellana I wind farms for a net
amount of Ps. 2,257 million, after deducting the repayment of short-term
loans during 2018, which was partially offset by (i) Ps. 1,418 million
in cash dividend distributed to Central Puerto’s stockholders, and (ii)
Ps. 461 million paid in interest and financial expenses.

E. Tables

a.Consolidated Income Statement

2018

2017

Thousand Ps.

Thousand Ps.

Revenues

14,265,370

9,638,568

Cost of sales

(6,486,698)

(5,199,149)

Gross income

7,778,672

4,439,419

Administrative and selling expenses

(1,389,336)

(1,056,257)

Other operating income

13,222,842

930,062

Other operating expenses

(132,881)

(140,138)

CVO receivables update and interests

11,017,014

-

Operating income

30,496,311

4,173,086

Results due to exposure to the change in the purchasing power of the
currency

(4,036,196)

(151,904)

Finance Income

2,280,193

1,558,816

Finance Expenses

(6,300,881)

(1,200,654)

Share of the profit of associates

1,074,185

1,173,004

Income before income tax form continuing operations

23,513,612

5,552,348

Income tax for the period

(6,604,351)

(1,081,177)

Net income for the period from continuing operations

16,909,261

4,471,171

DISCONTINUED OPERATIONS

Net income for the period from non-continuing operations

276,177

791,274

Net income for the period

17,185,438

5,262,445

b.Consolidated Statement of Financial Position

As of December 31,2018

As of December 31,2017

Thousand Ps.

Thousand Ps.

Assets

Non-current assets

Property, plant and equipment

22,567,418

17,451,669

Intangible assets

2,235,230

1,988,603

Investment in associates

1,998,336

1,830,138

Trade and other receivables

16,671,608

3,842,054

Other non-financial assets

222,955

18,782

Assets due to differed taxes

-

2,996

Inventories

74,687

71,187

43,770,234

25,205,429

Current assets

Inventories

220,896

194,640

Other non-financial assets

495,130

695,313

Trade and other receivables

10,579,028

5,733,942

Other financial assets

1,964,630

1,639,941

Cash and cash equivalents

229,948

130,863

13,489,632

8,394,699

Assets held-for-sale

-

748,866

Total assets

57,259,866

34,348,994

Equity and liabilities

Capital stock

1,514,022

1,514,022

Adjustment to capital stock

11,442,144

11,442,144

Legal and other reserves

383,393

162,480

Voluntary reserve

4,406,281

1,019,873

Retained earnings

14,715,337

2,206,313

Accumulated other comprehensive income

0

207,999

Equity attributable to shareholders of the parent

32,461,177

16,552,831

Non-controlling interests

467,677

478,704

Total Equity

32,928,854

17,031,535

Non-current liabilities

Other non-financial liabilities

1,958,883

692,009

Other loans and borrowings

5,204,030

2,183,278

Borrowings from CAMMESA

1,004,304

1,558,485

Compensation and employee benefits liabilities

148,470

166,983

Deferred income tax liabilities

4,793,384

3,847,033

13,109,071

8,447,788

Current liabilities

Trade and other payables

1,729,909

1,501,885

Other non-financial liabilities

1,660,944

973,971

Borrowings from CAMMESA

1,812,910

2,588,283

Other loans and borrowings

672,668

746,503

Compensation and employee benefits liabilities

391,168

477,136

Income tax payable

4,416,843

1,619,402

Provisions

537,499

610,476

11,221,941

8,517,656

Liabilities associated with the assets held for sale

0

352,015

11,221,941

8,869,671

Total liabilities

24,331,012

17,317,459

Total equity and liabilities

57,259,866

34,348,994

c.Consolidated Statement of Cash Flow

2018

2017

Thousand Ps.

Thousand Ps.

Operating activities

Net Income for the period before income tax from continuing
operations

23,513,612

5,552,348

Net Income for the period before income tax from discontinued
operations

328,814

1,181,290

Net Income for the period before income tax

23,842,426

6,733,638

Adjustments to reconcile income for the period before income tax
to net cash flows:

Depreciation of property, plant and equipment

1,142,555

1,202,111

Disposal of property, plant and equipment

104,378

1,351

Amortization of intangible assets

349,674

413,037

CVO receivables update and interests

(11,017,014)

-

Interest earned from customers

(1,623,309)

(437,583)

Financial income

(2,280,193)

(1,558,816)

Financial expenses

6,300,881

1,200,654

Share of the profit of associates

(1,074,185)

(1,173,004)

Provision for depreciation of materials

37,895

34,401

Stock-based payments

13,369

5,155

Movements in provisions and long-term employee benefit plan expenses

(40,352)

121,380

Trade receivables foreign exchange difference

(11,403,596)

(116,699)

Income from the sale of La Plata plant

(229,054)

-

Result from exposure to the change in purchasing power of the
currency

(2,279,554)

(766,906)

Working capital adjustments:

Increase in trade and other receivables

5,187,097

(1,147,271)

Decrease (Increase) in other non-financial assets and inventories

(30,750)

(343,515)

Increase in trade and other payables, other non-financial
liabilities and liabilities from employee benefits

1,808,271

(54,486)

(15,033,887)

(2,620,191)

Interest received from customers

44,358

119,293

Income tax paid

(4,240,036)

(1,161,769)

Net cash flows provided by operating activities

4,612,861

3,070,971

Investing activities

Purchase of property, plant and equipment

(6,958,953)

(5,734,812)

Cash flows generated from the sale of La Plata plant

625,905

-

Dividends received

970,084

59,470

Sale of available-for-sale assets, net

292,639

2,394,118

Purchase of investment in associates

-

(9)

Net cash flows provided by investing activities

(5,070,325)

(3,281,233)

Financing activities

Short term loans (settlements) proceeds, net

(23,139)

(1,089,069)

Long term loans received

4,374,978

2,840,834

Long term loans paid

(2,095,109)

(1,654,794)

Borrowings received from CAMMESA

-

1,023,563

Interests and other loan costs paid

(461,443)

(71,113)

Dividends paid

(1,417,639)

(1,888,971)

Contributions from non-controlling interests

309,764

497,762

Net cash flows provided (used in) by financing activities

687,412

(341,788)

Net decrease (increase) in cash and cash equivalents

(676,887)

39,646

Exchange difference and other financial results

1,331,368

66,978

Results due to exposure to the change in the purchasing power of the
currency

(555,396)

(31,056)

Cash and cash equivalents as of January 1

130,863

55,295

Cash and cash equivalents as of December 31

229,948

130,863

F. Information about the Conference Call

There will be a conference call to discuss Central Puerto’s the 2018
results on March 13, 2019 at 13:00 New York Time / 14:00 Buenos Aires
Time.

The Company will also host a live audio webcast of the conference call
on the Investor Relations section of the Company's website at http://investors.centralpuerto.com/.
Please allow extra time prior to the call to visit the website and
download any streaming media software that might be required to listen
to the webcast.

“CVP” refers to Variable Cost of Production of producing energy, which
may be declared by the generation companies to CAMMESA;

“CVO effect” refers to the CVO receivables update and interests
triggered by the CVO Plant Commercial Operation Approval, which
generated a Ps. 11,017 million one-time-gain accrued during the 1Q2018;

“Ecogas” refers collectively to Distribuidora de Gas Cuyana
(“DGCU”), and its controlling company Inversora de Gas Cuyana
(“IGCU”) and Distribuidora de Gas del Centro (“DGCE”), and
its controlling company Inversora de Gas del Centro (“IGCE”);

“Energía Base” (legacy energy) refers to the regulatory framework
established under Resolution SE No. 95/13, as amended, and, since
February 2017, regulated by Resolution SEE No. 19/17;

“MATER”, refers to Mercado a Término de Energía Renovable, is the
regulatory framework that allows generators to sell electric energy
from renewable sources directly to large users.

“p.p.”, refers to percentage points;

“TGM” refers to Transportadora de Gas del Mercosur S.A.;

Disclaimer

Rounding amounts and percentages: Certain amounts and percentages
included in this release have been rounded for ease of presentation.
Percentage figures included in this release have not in all cases been
calculated on the basis of such rounded figures, but on the basis of
such amounts prior to rounding. For this reason, certain percentage
amounts in this release may vary from those obtained by performing the
same calculations using the figures in the financial statements. In
addition, certain other amounts that appear in this release may not sum
due to rounding.

This release contains certain metrics, including information per
share, operating information, and others, which do not have standardized
meanings or standard methods of calculation and therefore such measures
may not be comparable to similar measures used by other companies. Such
metrics have been included herein to provide readers with additional
measures to evaluate the Company’s performance; however, such measures
are not reliable indicators of the future performance of the Company and
future performance may not compare to the performance in previous
periods.

OTHER INFORMATION

Central Puerto routinely posts important information for investors in
the Investor Relations support section on its website, www.centralpuerto.com.
From time to time, Central Puerto may use its website as a channel of
distribution of material Company information. Accordingly, investors
should monitor Central Puerto’s Investor Support website, in addition to
following the Company’s press releases, SEC filings, public conference
calls and webcasts. The information contained on, or that may be
accessed through, the Company’s website is not incorporated by reference
into, and is not a part of, this release.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

This release contains certain forward-looking information and
forward-looking statements as defined in applicable securities laws
(collectively referred to in this Earnings Release as “forward-looking
statements”) that constitute forward-looking statements. All statements
other than statements of historical fact are forward-looking statements.
The words ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘expect’’,
‘‘should’’, ‘‘plan’’, ‘‘intend’’, ‘‘will’’, ‘‘estimate’’ and
‘‘potential’’, and similar expressions, as they relate to the Company,
are intended to identify forward-looking statements.

Statements regarding possible or assumed future results of operations,
business strategies, financing plans, competitive position, industry
environment, potential growth opportunities, the effects of future
regulation and the effects of competition, expected power generation and
capital expenditures plan, are examples of forward-looking statements.
Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by management,
are inherently subject to significant business, economic and competitive
uncertainties and contingencies, which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements.

The Company assumes no obligation to update forward-looking statements
except as required under securities laws. Further information concerning
risks and uncertainties associated with these forward-looking statements
and the Company’s business can be found in the Company’s public
disclosures filed on EDGAR (www.sec.gov).

Adjusted EBITDA

In this release, Adjusted EBITDA, a non-IFRS financial measure, is
defined as net income for the year, plus finance expenses, minus
finance income, minus share of the profit of associates, minus
depreciation and amortization, plus income tax expense, plus
depreciation and amortization, minus net results of discontinued
operations.

Adjusted EBITDA is believed to provide useful supplemental information
to investors about the Company and its results. Adjusted EBITDA is among
the measures used by the Company’s management team to evaluate the
financial and operating performance and make day-to-day financial and
operating decisions. In addition, Adjusted EBITDA is frequently used by
securities analysts, investors and other parties to evaluate companies
in the industry. Adjusted EBITDA is believed to be helpful to investors
because it provides additional information about trends in the core
operating performance prior to considering the impact of capital
structure, depreciation, amortization and taxation on the results.

Adjusted EBITDA should not be considered in isolation or as a substitute
for other measures of financial performance reported in accordance with
IFRS. Adjusted EBITDA has limitations as an analytical tool, including:

• Adjusted EBITDA does not reflect our finance expenses, or the cash
requirements to service interest or principal payments on our
indebtedness, or interest income or other finance income;

• Adjusted EBITDA does not reflect our income tax expense or the cash
requirements to pay our income taxes;

• although depreciation and amortization are non-cash charges, the
assets being depreciated or amortized often will need to be replaced in
the future, and Adjusted EBITDA does not reflect any cash requirements
for these replacements;

• although share of the profit of associates is a non-cash charge,
Adjusted EBITDA does not consider the potential collection of dividends;
and

• other companies may calculate Adjusted EBITDA differently, limiting
its usefulness as a comparative measure.

The Company compensates for the inherent limitations associated with
using Adjusted EBITDA through disclosure of these limitations,
presentation of the Company’s consolidated financial statements in
accordance with IFRS and reconciliation of Adjusted EBITDA to the most
directly comparable IFRS measure, net income. For a reconciliation of
the net income to Adjusted EBITDA, see the tables included in this
release.